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Ireland: C&C First Half Profit Down, Keeps Full Year Guidance

Source: Reuters
08/10/2009

Dublin, Oct 8 - Irish drinks group C&C posted a 13.6 percent drop in first half operating profit on Thursday and retained full year guidance against what it called a challenging outlook.

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C&C, which bought the Scottish and Irish businesses of Anheuser-Busch InBev (ABI.BR) last month, said full year operating profit without taking account of that deal would be at the top end of a 77 million to 82 million euros range.

Analysts see the 180 million pound ($287.9 million) purchase pushing full year operating profit to 87.15 million euros, according to Thomson Reuters I/B/E/S consensus estimates.

Following the move to diversify into beer including Scotland's top lager, Tennent's, the maker of Magners cider added that it was reviewing an intended additional 8 million euro investment behind its cider brands.

"Following the acquisition of the Tennent's business, and in light of recent trading conditions we will now review overall marketing investment," chief executive John Dunsmore said in a statement.

C&C said operating profit before exceptional items for the half year to end-August fell to 57.4 million euros as revenue slipped 10.5 percent to 257.5 million euros.

The group, which also makes Tullamore Dew Irish Whiskey and Irish Mist liqueur, said cider volumes for the period were flat, with Spirits & Liqueurs volumes down 15 percent.

It added that trading conditions in August and September had been more challenging that the first half.



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